AS ISO 21504:2016 Project, programme and portfolio management—Guidance on portfolio management
5.7.2 Establishing the portfolio performance measurement baseline
In order to manage the performance of the portfolio, the portfolio manager should establish, use or integrateexistingsystems with metrics and performance baselines that measure both portfolio component specific and aggregate level portfolio performance. Portfolio performance measurements should be used to enable the portfolio manager to ensure that the total investments of all portfolio components are on track to achieve individual and aggregate level benefits and value to strategic objectives.Portfolio performance metrics are specific to the strategic objectives to which the portfolio is aligned and to the organization and should include:
a) portfolio component specific metrics addressing schedule, technical and financial performance;
b) aggregate level portfolio measures tracking the overall health of the portfolio, value creation and benefits realization;
c) performance indicators alerting portfolio management of resources utilization, issues and risks.
5.7.3 Managing portfolio performance
In order to effectively manage the performance of the portfolio, the portfolio manager should undertake activities to:
a) track portfolio component level performance;
b) track overall portfolio performance;
c) maintain a portfolio measurement baseline;
d) track contributions of portfolio benefits and compare them with the current strategic objectives;
e) provide forecasting, including but not limited to resource and capacity utilization and strategy and risk.
Further, to manage performance of the portfolio, the portfolio manager should also analyse:
1) both top-down and bottom-up the portfolio component composition, alignment and performance;
2) the impact of individual portfolio component performance on the performance of the entire portfolio and achievement of prioritized strategic objectives;
3) the impact of the interaction among the portfolio components and the impact of these interactions on the performance of the portfolio.
5.7.4 Reporting portfolio performance
In order to provide appropriate information to stakeholders, the portfolio manager should:
a) perform portfolio reporting;
b) maintain a reporting cycle;
c) integrate the reporting cycle across the portfolio.
5.7.5 Managing the integration of benefits
In order to improve the likelihood that the benefits are realized by the portfolio components and to enable future actions of the portfolio or the general operations of the organization, the portfolio manager should verify the following:
a) identification of benefits;
b) identification of benefits realization timeframe;